How To Invest In Commodities: 5 Simple Strategies
Prospective traders had far fewer options to invest in commodities before online trading took the stage.
Today, you can speculate on commodity price movements with or without actually owning the asset.
Most countries have bullion dealers, both brick-and-mortar and online shops. They allow you to buy or sell metals like gold, silver, platinum, and palladium.
Buy Precious Metals Through Bullion Dealers
Buy Stocks or ETFs
For example, there are dozens of mining companies that specialize in industrial metals. By investing in these companies, you’re investing in the commodities they sell or produce.
Much like we just discussed with ETFs, mutual fund prices are determined by multiple investment products, whether they’re indices, stocks, or other complex financial instruments.
Invest in Futures & Options Contracts
Typically, futures contracts are available precious metals, common metals, soft agricultural commodities, and energy commodities.
A CFD is an agreement between you and a third party, typically a broker, where the buyer or seller pays the difference between the contract opening and closing price to the opposing party.
Contracts for Difference (CFDs)
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